HS2 railway may now be delayed by SEVEN years and cost as much as £80 billion... if it doesn't get cancelled all together
- HS2 could cost up to £78billion, Transport Secretary Grant Shapps revealed
- In a written statement to Parliament, Mr Shapps said the project could face delay
- He said HS2 chairman doesn't think current design 'can be delivered within the £55.7bn budget' and does not believe 2026 schedule for Phase One is 'realistic'
Transport Secretary Grant Schapps leaves Downing Street in London, August 1, 2019
HS2 could cost up to £22 billion more than its previous budget and may be delayed by seven years, the company building the high-speed railway said.
A report by HS2 Ltd chairman Allan Cook stated that the original plans 'did not take sufficient account' of the effect of building a high-speed line through areas that are densely populated and with challenging ground conditions.
He added that the project's budget has 'proved unrealistic', but added: 'At the same time the benefits have been understated.'
In a written statement to Parliament, Transport Secretary Grant Shapps said the chairman of HS2 does not believe the current design can be delivered within the £55.7 billion budget, set in 2015 prices.
'Instead he estimates that the current scheme requires a total budget - including contingency - in the range of £72 to £78 billion, again in 2015 prices,' Mr Shapps says in his statement.
'Regarding schedule, the chairman does not believe the current schedule of 2026 for initial services on Phase One is realistic.
'In line with lessons from other major transport infrastructure projects, his advice proposes a range of dates for the start of service.
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'He recommends 2028 to 2031 for Phase One - with a staged opening, starting with initial services between London Old Oak Common and Birmingham Curzon Street, followed by services to and from London Euston later.
'He expects Phase 2b, the full high-speed line to Manchester and Leeds, to open between 2035 and 2040.'
A 2040 opening would constitute a delay of seven years from the previous date of 2033.
The Government has already commissioned a review into the enterprise, saying that a decision on whether it will go ahead at all will be made by the end of the year.
The Government has already commissioned a review into the enterprise, saying that a decision on whether it will go ahead at all will be made by the end of the year (pictured: A sign post directing HS2 works traffic near the village of South Heath in Buckinghamshire)
A spokesman for HS2 Ltd said: 'The report by our chairman Allan Cook is an assessment of the current status of the HS2 programme.
'It examines the comprehensive and far-reaching benefits of HS2 for the country, which are more significant than those previously taken into account.
'It also examines the challenges facing the project. It sets out a rigorous cost and schedule range for delivery of the programme under its current scope.
'The assessment makes clear that HS2 remains a compelling strategic answer for Britain's future transport needs, relieving overcrowding and congestion on our roads and railways, and reducing the carbon footprint of the UK.
'It will drive economic growth and regeneration in our regions, and bring Britain closer together.
'The assessment of Phase One is based on the significant work carried out so far, which has given us detailed insight into the scale and complexity of the programme. The assessment of Phase 2b takes into account lessons learnt on Phase One.'
Pictured is the HS2rail route, showing phase one (dark blue line), two A (light blue line) and two B (orange line) as well as existing services that will use the network (yellow line)
Confederation of British Industry director of infrastructure Tom Thackray admitted the problems facing the high-speed railway are disappointing but insisted it 'promises to bring huge economic benefits across the country'.
He went on: 'The message from business on the project remains consistent - build it, back it, benefit from it.
'Of course, today's report may be a clarion call for those anti-HS2 voices, but businesses believe derailing the scheme would be a significant economic restraint on the Midlands and the North.'
Transport Salaried Staffs' Association general secretary Manuel Cortes claimed there is 'no good reason' for delaying HS2.
He said: 'A delay will simply set back our economy and hamper the much-needed clean and green evolution of our transport infrastructure.
'Our northern cities and the wider economy just can't afford to wait. They are crying out for the boost HS2 will give to regional economies.
Transport Salaried Staffs' Association general secretary Manuel Cortes claimed there is 'no good reason' for delaying HS2 (pictured: A HS2 sign near the village of South Heath in Buckinghamshire)
'Let's be under no illusions, high-speed rail has been up and running in other European countries for decades. Why is it we lack so much ambition? We must say no way to delay.'
Nick Baveystock, director general of the Institution of Civil Engineers, said other major projects such as Crossrail show that updates on costs and timings can be 'beneficial'.
He added: 'It is better to have these conversations now rather than after deadlines have been missed.'
Penny Gaines, who chairs campaign group Stop HS2, said work on HS2 should be stopped while the Government-commissioned review is carried out.
She said: 'They've given up the pretence that they can get it built to the original timescale, so there is no need for urgency.
'The damage is real, the damage is irreversible and the damage is ongoing.
'The only reason for continuing is to make it harder to call a halt to HS2. It's like a slash and burn of the countryside for no reason other than to wreck it.'
